Whilst private rental prices have spiked during the last couple of years in the UK, we’re seeing a significant sea-change in terms of how tenants are safeguarded by law.
For example, the highly-anticipated Tenant Fees Act will potentially save renters throughout England up to £240 million each year, as tenancy deposits are capped and landlords prohibited from charging unnecessary fees.
However, tenants will still need to adopt a proactive approach to negotiating private rents with landlords, particularly when they attempt to implement an incremental increase. So, here are some ideas to help you negotiate the most competitive deal.
1. Do your Research and Understand the Marketplace
Before you enter into a rent renegotiation, it’s important to understand where you stand both in terms of your basic rights and the current state of the marketplace.
In terms of the former, a fair rent should only really be increased every two years, in line any incremental increases in the cost of living. This should give you an idea about the frequency and scope of reasonable rent increases, whilst your landlord must provide written notice on a special form if they want to raise the amount that you’re required to pay.
On a similar note, landlords cannot increase your rent if you’re already in the middle of an agreed contract, so do not enter into any negotiations if this is the case.
In terms of the marketplace, you should also be well-informed with regards to the average rents for similarly sized properties in your areas. Outlets such as Homelet will help you to compare these prices in detail, helping you to start the negotiations on an assured footing.
2. Know what your Home is Worth
On a similar note, determining the real-time value of your rental property will help you to negotiate a viable deal with your landlord.
This is important, as the rent of a property should reflect its underlying value, otherwise you’ll end up paying a premium for a largely inadequate home.
This type of issue can become really problematic when the landlord tries to increase your rent further, so it’s important to present your case articulately and try to minimise any future hike in your monthly repayment.
Just to protect yourself, it’s worth brushing up further on local rent laws to ensure that the increase is fully legal and legitimate, or risk being placed at the mercy of an unscrupulous landlord.
3. Don’t be Afraid to Ask for What you Want
Of course, one of the first rules of any negotiation is having a clear objective, which in this case should be a fair rental price that reflects the market value.
It’s also important to articulate this clearly to your landlord, so that they have a clear understanding of your position and hopefully complete a quick and amicable rent increase.
The process of negotiation may also throw up some opportunities to reduce your rental repayments further, particularly if you have a coveted skill or service that your landlord requires.
Conversely, if the landlord refuses to budge on the amount payable, you could look to negotiate additional perks such as a prime parking space or some specific modifications that will help to upgrade the property.